14 DAY TRIAL // After previously planning to sell only the factory equipment as part of a restructuring plant, Japan Display has recently decided to seek a buyer for the entire Hakusan factory in Ishikawa Prefecture, according to a report.
And unsurprisingly, Apple and Sharp are two of the names that are reportedly involved in the talks, with Nikkei revealing via unnamed sources familiar with the matter that the duo is yet to decide how exactly stakes would be shared should the takeover go through.
Japan Display, also known as JDI, is trying to sell the manufacturing plant due to poor sales, which are mostly the result of strong competition from other companies involved in the screen production business. Sharp, which is a unit of Foxconn, Apple’s largest supplier, also builds screens for iPhones, and taking over JDI’s plant could technically provide it with increased production power for LCD panels.
“We are carefully considering it, reviewing the impact that any purchase would have on our earnings, and whether and how much risk it would entail,” Sharp said.
Talks still under way
JDI said earlier this year that negotiations over selling production equipment used at the Hakusan plant were still under way, suggesting that Apple was indeed one of the interested parties.
But according to Nikkei, JDI now wants to sell not only the manufacturing equipment, but also the entire facility, including the land and buildings, for as much as $820 million.
The manufacturing plant started operations in 2016, and it was built following a $1.5 billion investment, $800 million of which came from none other than Apple. The Cupertino-based tech giant invested in JDI to help boost LCD production, as the company wanted to increase the output of displays to resolve inventory issues ahead of new-generation iPhone launches.
Neither Apple nor JDI confirmed the talks, but a decision is likely to be announced in January.